– Chapter 9 –
Where Are We Now?
As we go to press in August 2017, here’s where we are in the oil $500 story… OPEC began its price war on the world in late 2014 by ramping up production. It raised output, and oil prices plummeted. On February 11, 2016, they hit a low of $26.21 per barrel– an 80% fall in less than two years. That sent shockwaves throughout the world… National Oil Companies began to lose money at an astounding rate. Economies in the OPEC nations and Russia teetered on the edge. Saudi Arabia assured the world that with upwards of $750 million in its rainy-day fund, it was prepared to weather lower prices. In the U.S., as oil prices fell, companies went bankrupt. The U.S. rig count fell to 480 in March 2016 – its lowest level since 1999.
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